Friday, April 13, 2012

Charles Krauthammer: Free-lunch egalitarianism

Charles Krauthammer  "As an approach to our mountain of debt, the Buffett Rule is a farce. And yet Obama repeated the ridiculous claim again this week. “It will help us close our deficit.” Does he really think we’re that stupid?"
...."Clever politics, but in terms of economics, it’s worse than useless. It’s counterproductive. The reason Buffett and Mitt Romney pay roughly 15 percent in taxes is that their income is principally capital gains. The Buffett Rule is, in fact, a disguised tax hike on capital gains. But Obama prefers to present it as just an alternative minimum tax because 50 years of economic history show that raising the capital gains tax backfires: It reduces federal revenue, while lowering the tax raises revenue."
Political Cartoons by Steve Breen

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